§ Lord Judd asked Her Majesty's Government:
§ What action they are taking to persuade the private and public sectors in the United Kingdom to increase the use of green technology; to improve their efficiency in the use of natural resources; to adopt fully, where applicable, the Organisation for Economic Co-operation and Development guidelines for multinational companies; and to report regularly on their social and environmental performance. [HL1226]
§ The Minister for Science, Department of Trade and Industry (Lord Sainsbury of Turville)The Government are taking robust action on all these issues.
GREEN TECHNOLOGY AND NATURAL RESOURCES
The recent White Paper, Opportunity for all in a world of change, takes forward the new green industrial agenda. It is based on radically improving resource productivity by harnessing innovation, green technologies and the market. The Government are leading on a number of initiatives to persuade sectors to increase use of green technology, which include the Sustainable Technologies Initiative and a proposal to consult on setting up a Green Technology Challenge (GTC). Work is also taking place to establish and run a Climate Change Projects Office. Programmes such as Envirowise and the Waste and Resources Action Programme (WRAP) also help to improve efficiency in the use of natural resources.
A total of over £250 million over the next three years will be invested in renewable energy and renewables R&D, and Climate Change Levy exemptions are available to businesses on renewable electricity from quality assured combined heat and power plants.
As far as the public sector is concerned, the Green Ministers Committee (which is made up of Ministers from each Department) works collectively to promote the integration of sustainable development across government and the wider public sector.
OECD GUIDELINES FOR MULTINATIONAL ENTERPRISES
The Government are actively promoting and implementing the OECD guidelines through the National Contact Point (NCP) housed in the Department of Trade and Industry. Activities include 12WA the establishment and maintenance of a website; discussions with industry, trade union and other non-governmental organisation representatives; participation in the Confederation of British Industry Annual Conference; and a soon-to-be-published booklet to raise awareness of the guidelines and highlight the role of the NCP.
SOCIAL AND ENVIRONMENTAL PERFORMANCE REPORTING
The need for wider reporting of non-financial information by companies is being considered as part of a review of company law being undertaken by an independent steering group. The steering group has proposed that economically important companies should be required to publish, as part of their annual report, a new operating and financial review (OFR). This would require the company's directors to report on the performance and future plans and prospects of the company, including policies and performance on social and environmental issues where they are material to an understanding of the business.
The steering group is expected to publish its final recommendations in May this year. The Government will then set out their response and proposed way forward in the light of the review's recommendations.
In addition, in his recent report on corporate social responsibility, the Parliamentary Under-Secretary of State for Competition and Consumer Affairs underlined the importance the Government attach to corporate social responsibility, including reporting on performance. The Department of Trade and Industry (DTI) also supported the Business Impact Task Force (which last year gave guidance and showed the importance to business of reporting on their impact on society) and a number of projects which encouraged environmental and sustainability good practice, including reporting.
The Prime Minister has challenged the top 350 FTSE companies to report on their environmental performance by the end of the year.
Government departments' progress in reducing their environmental impacts is already made public in the annual "green Ministers" report. These reports also cover their progress in taking account of environmental and sustainable development issues in their policy making. The Department of the Environment, Transport and the Regions is also encouraging businesses to measure, manage and report publicly on their major environmental impacts and has published a series of guidelines for company reporting in Greenhouse Gases, Waste and Water.